Alamo, CA asked in Real Estate Law and Tax Law for California

Q: Would my father be responsible for Capital Gains tax if he were to sell his House?

My dad owns his house in Cupertino, it was reappraised after my mom passed a little over a year ago for 2.5 million. If he were to sell it today for say 3.0 million, would he need to pay Capital Gains? I was under the impression, that from the 2.5 appraisal and 250K exclusion for my dad and 250k for my mother, if my dad sold his house at the 3 million he would not need to pay the Cap Gains. Is that correct?

Related Topics:
2 Lawyer Answers
Maurice Mandel II
Maurice Mandel II
Answered
  • Newport Beach, CA
  • Licensed in California

A: Tax questions are very complex and a public forum such as this is not the place to find an answer to rely on. You need to take all the information and documents to a tax attorney or tax accountant for an opinion. There is also something called a 1031 exchange, which you can transfer the excess equity to the purchase of a new residence. But you need to consult a tax attorney about all of this. I don't think your calculations are correct.

Justia disclaimers below, incorporated herein.

Zaher Fallahi agrees with this answer

Zaher Fallahi
Zaher Fallahi
Answered
  • Tax Law Lawyer
  • Los Angeles, CA
  • Licensed in California

A: This is an important matter with a large amount, and I would consult a tax attorney for a specific advice. I hope this helps. Good luck. Zaher Fallahi, Esq, CPA (CA &D.C.).

Disclaimer: No solicitation is intended by answering general questions in this forum. This is for information purposes, not intended for, and may not be construed, as legal or tax advice. For specific advice please consult your legal counsel.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.